EU leaders are meeting with Chinese counterparts this Thursday and Friday to commemorate 50 years of diplomatic relations, but significant challenges overshadow the celebrations. The summit takes place amid growing concerns about China’s support for Russia’s war in Ukraine, unfair trade practices, and its dominance in critical mineral supply chains.

The EU must be prepared to impose further sanctions on Chinese entities that are helping Russia to sidestep existing European sanctions. This action is vital to convey the importance the EU places on Ukraine’s sovereignty and territorial integrity. China’s continued assistance to Russia’s war economy, including the supply of war-related materials and components used in drones and missiles, undermines European security interests.

China’s ambition to dominate key industries, particularly the automotive sector, poses another challenge. While the EU has imposed tariffs on Chinese electric vehicles to counter state subsidies that artificially lower prices, the US has implemented far more restrictive measures. The presence of Chinese-made vehicles equipped with chatbots disseminating Chinese Communist Party propaganda further exacerbates these concerns.

The concentration of rare earth element processing in China represents a significant strategic vulnerability for Europe. China’s near-monopoly in this sector, achieved through state subsidies, strategic competition, and lax environmental regulations, gives it undue leverage over Europe’s green transition and military buildup. Rare earth elements and minerals are essential for manufacturing electric vehicles, wind turbines, and advanced military equipment, including components in Danish F-35 fighter jets.

The EU needs to accelerate its efforts to diversify its supply chains for rare earth elements and minerals, prioritizing partnerships with democratic countries. This strategy, centered on “free trade between free countries,” will mitigate the risk of China using its control over these resources as an economic weapon in future geopolitical conflicts. The close alignment between Xi Jinping and Vladimir Putin underscores the urgency of this diversification effort, as China could potentially halt mineral exports to Europe in the event of a conflict in Asia, thereby weakening European security and making the continent more vulnerable to Russian aggression.